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FY2026 First Quarter Consolidated Financial Results August 7 , 2026 Supporting Your Movement . AIDO METAL Daido Metal Co. , Ltd. TSE Prime Market NSE Premier Market Code : 7245 Note : This document is a translation of a part of the original Japanese version and provided for reference purposes only . In the event of any discrepancy between the Japanese original and this English translation , the Japanese original shall prevail .
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Key Points of FY2026 First Quarter Results 2 FY2026 Q1 Actual Net sales：Increased year on year, supported by continued strong demand from the marine and data center applications, increased demand for HEVs due to the slowdown in EVs, and new orders from Chinese motorcycle manufacturers. Operating profit: Although affected by material costs and labor costs, operating profit increased year on year through progress in price revisions, strengthened profitability management, and higher sales. FY2026 Forecast Although material costs and other expenses have risen due to the situation in the Middle East, strong demand, particularly from the marine and data center sectors, continues. Cost pass-through for labor and material costs, as well as price optimization, is also progressing steadily. As a result, full-year performance is expected to be in line with the initial plan. In addition, we are advancing initiatives in growth areas, particularly data center-related products. By leveraging the increased production capacity resulting from additional investments, we aim to secure further order opportunities. Dividend The FY2026 dividend forecast remains unchanged from the initial plan at JPY 36 per share annually. ©2026 DAIDO METAL CO., LTD. All rights Reserved.
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FY2026 First Quarter Overview <Actual> 3 Unit: JPY Million ©2026 DAIDO METAL CO., LTD. All rights Reserved. 33,516 35,333 1,816 5.4% 1,832 2,017 184 10.1% 5.5% 5.7% 0.2pt 1,467 1,786 319 21.8% 4.4% 5.1% 0.7pt 592 1,020 428 72.3% 1.8% 2.9% 1.1pt 3.3% 5.0% 1.7pt － 36.7% 38.9% 2.3pt － 37,367 36,891 - 475 - 1.3% 149.52 159.88 162.08 183.41 *The profit margin is a percentage of net sales. Exchange rate is TTM rate as of March 31. Exchange rate (USD) Exchange rate (EUR) Net assets to total assets Net interest bearing debt Operating profit Operating margin Ordinary profit Ordinary income margin Return on Equity (ROE) *1 Profit attributable to owners of parent Net profit margin Net sales 2025/6 2026/6 Actual Amount Ratio *1 Annualized
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Causes of Fluctuation in Operating profit 4 Unit: JPY Billion Although approximately JPY 1.42 billion in negative impacts arose from material costs and labor costs, approximately JPY 1.60 billion in positive impacts were secured through Price passing of material costs, Price passing of labor costs, Expenses, etc., and Profit improvement. As a result, operating profit increased by approximately JPY 0.18 billion year on year. Expenses, etc. :+0.18 Fluctuations in exchange rate :+0.08 Depreciation :+0.06 ©2026 DAIDO METAL CO., LTD. All rights Reserved. Labor costs -0.42 Material costs -1.00 Price passing of labor costs 0.27 Expenses, etc. 0.32 Price passing of material costs 0.35 Profit improvement 0.66 2025/6 Operating profit 1.83 2026/6 Operating profit 2.01 0.00 0.50 1.00 1.50 2.00 2.50 Year-on-year comparison
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FY2026 Overview <Forecast> 5 Actual Forecast 2026/3 2027/3 142,009 145,000 2,990 2.1% 8,371 9,500 1,128 13.5% 5.9% 6.6% 0.7pt 7,402 9,000 1,597 21.6% 5.2% 6.2% 1.0pt 4,396 5,000 603 13.7% 3.1% 3.4% 0.4pt 5.7% 6.5% 0.8pt － 156.56 153.00 184.33 182.00 TTM rate as of December 31. *ROE forecast is calculated based on the average capital for the results using the forecast of profit attributable to owners of the parent. Net sales Amount Ratio Exchange rate (USD) Exchange rate (EUR) Operating profit Operating margin Ordinary profit Ordinary income margin Return on Equity (ROE)* Profit attributable to owners of parent Net profit margin *The profit margin is a percentage of net sales. Unit: JPY Million ©2026 DAIDO METAL CO., LTD. All rights Reserved. There are no changes to the forecast for the FY2026 announced on May 12,2026
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Dividend/ Dividend Payout Ratio 6 2023/3 2024/3 2025/3 2026/3 2027/3 Interim 10 2 7 12 18 Year-end 2 13 11 19 18 Annual 12 15 18 31 36 Dividend Payout Ratio ー 27.5% 31.2% 33.1% 33.6% Dividend Yield （Year-end price basis） 2.3% 2.2% 3.6% 3.6% ー (Forecast)There are no change to the dividend forecast for the FY2026 announced on May 12,2026. Unit: JPY ©2026 DAIDO METAL CO., LTD. All rights Reserved. (Forecast)
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Performance Highlights ©2026 DAIDO METAL CO., LTD. All rights Reserved. 7 Unit: JPY Billion 115.4 128.7 136.3 142.0 35.3 2023/3 2024/3 2025/3 2026/3 2027/3 Net sales 145.0 Forecast 2.8 6.0 7.0 8.3 2.0 2.4% 4.7% 5.2% 5.9% 6.6% -3 . 0 % -1 . 0 % 1. 0% 3. 0% 5. 0% 7. 0% 9. 0% 0. 0 2. 0 4. 0 6. 0 8. 0 10 . 0 12 . 0 14 . 0 16 . 0 18 . 0 20 . 0 2023/3 2024/3 2025/3 2026/3 2027/3 Operating profit /Operating margin 9.5 Forecast 2.9 5.8 6.8 7.4 1.7 2.5% 4.5% 5.0% 5.2% 6.2% -3 . 0 % -1 . 0 % 1. 0% 3. 0% 5. 0% 7. 0% 9. 0% 0. 0 2. 0 4. 0 6. 0 8. 0 10 . 0 12 . 0 14 . 0 16 . 0 18 . 0 20 . 0 2023/3 2024/3 2025/3 2026/3 2027/3 Ordinary profit /Ordinary income margin 9.0 Forecast 2.2 2.3 2.5 2.8 0.7 2023/3 2024/3 2025/3 2026/3 2027/3 R&D expenses 2.6 Forecast 5.9 7.7 11.5 10.9 2.1 2023/3 2024/3 2025/3 2026/3 2027/3 Capital Expenditure 8.9 Forecast 9.1 9.5 9.5 9.9 2.3 2023/3 2024/3 2025/3 2026/3 2027/3 Depreciation 9.5 Forecast ：First Quarter Results
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Overview <Sales and Operating profit by Segment> ©2026 DAIDO METAL CO., LTD. All rights Reserved. 8 Net sales: Increased due to continued strong demand for marine and data center applications, recovery in the domestic automotive market, expansion of HEV demand in North America, and solid performance in the Life Business. Operating profit: Although affected by higher material costs and other factors, profit increased through progress in price optimization and profit improvement. Unit: JPY Million Net sales ratio 2026/6 Amount Ratio Amount Ratio Marine & Energy business 14.6% + 659 + 14.4% + 159 + 17.2% Others 1.7% + 64 + 11.9% + 14 + 13.1% Elimination of inter-segment transactions - 84 - 91 Total 100.0% + 1,816 + 5.4% + 184 + 10.1% Life business Frontier business 17.0% + 447 + 8.0% + 232 + 27.1% 15.9% + 124 + 2.3% - 43 － Segment 【Net sales】 【Operating profit or loss】 50.8% + 605 + 3.4% - 86 - 3.7%Powertrain business Year-on-year comparison
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2,337 2,250 -600 0 600 1,200 1,800 2,400 3,000 2025/6 2026/6 Powertrain business 9 Year-on-year comparisonUnit: JPY Million (Before elimination of inter-segment transactions) 17,553 18,159 0 5,000 10,000 15,000 20,000 2025/6 2026/6 【Net sales】 +605 (+3.4%) 【Operating profit or loss】 - 86 (- 3.7%) (+) Strong demand for passenger vehicles in Japan, particularly trucks, and recovery in demand for repair parts. (+) Strong demand for hybrid vehicles in North America. (+) Increased demand for diesel vehicles from some OEM customers in Europe. (-) Vehicle electrification in China and Thailand, sluggish demand in the South Korean market, and lower sales of repair parts affected by the situation in the Middle East. (-) Although expanding demand in each region and progress in price revisions contributed to improved profitability, profit declined due to the impact of higher material costs. (+)Gains (-)Losses ©2026 DAIDO METAL CO., LTD. All rights Reserved.
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928 1,087 -600 0 600 1,200 1,800 2,400 3,000 2025/6 2026/6 Marine & Energy business 10 Unit: JPY Million (Before elimination of inter-segment transactions) Year-on-year comparison 4,571 5,230 0 5,000 10,000 15,000 20,000 2025/6 2026/6 【Net sales】 +659 (+14.4%) 【Operating profit or loss】 +159 (+17.2%) (+) Large ships: Supply capacity expanded due to strong demand in the shipbuilding market and expansion of facilities in our company. In addition, strong demand for new shipbuilding, particularly in China, contributed to sales growth, resulting in sales exceeding the previous year's level. (+) Small/Medium ships, Industrial generators, Construction machinery, etc.: Sales increased due to increased demand for generators for data center applications and expanded production capacity. In addition, business development activities for power generators and railway-related applications in North America, China and Europe are progressing, supporting the expansion of the medium- to long-term growth base. (+) Large ships: Profit increased due to higher sales supported by strong demand for new shipbuilding and progress in price revisions. (+) Small/Medium ships, Industrial generators, Construction machinery, etc.: Profit increased due to higher sales driven by expanding demand for generators for data center applications and increased orders for high-value-added products. Progress in price revisions also contributed to improved profitability. (+)Gains (-)Losses ©2026 DAIDO METAL CO., LTD. All rights Reserved.
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17.9 19.8 22.8 27.4 31.0 FY2024 (Actual) FY2025 (Actual) FY2026 (Forecast) FY2027 (Forecast) FY2030 (Forecast) Expansion of Production Capacity for Medium- and High-Speed Engine Bearings Used in Data Centers ©2026 DAIDO METAL CO., LTD. All rights Reserved. 11 In response to growing demand from the data center market, we began capital investments to expand production capacity in FY2025. We decided to make an additional investment of approximately JPY 4.0 billion and start construction of a new plant in Mexico in FY2026. Through these investments, global production capacity for medium- and high-speed engine bearings is expected to increase by 50% compared with FY2025 levels by FY2030. As a result, sales in the Marine & Energy Business are projected to exceed JPY 35.0 billion, approximately 1.7 times the FY2025 level. Initial Plan in the Medium-Term Management Plan Additional Sales Included in the Forecast Since FY2026 （Unit: JPY Billion） Over 35 1.7x (vs. FY2025) TOPICS Marine & Energy business Since FY2025 Construction of a new plant and plating plant FY2026 Groundbreaking for a new plant in Mexico FY2028 Planned start of production at the Mexico plant 【Net sales】 Marine & Energy Business
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857 1,089 -600 0 600 1,200 1,800 2,400 3,000 2025/6 2026/6 Life business 12 Unit: JPY Million (Before elimination of inter-segment transactions) Year-on-year comparison 5,611 6,058 0 5,000 10,000 15,000 20,000 2025/6 2026/6 【Net sales】 +447 (+8.0%) 【Operating profit or loss】 +232 (+27.1%) (+) Automotive components: Steady demand for shock absorber bearings for automobiles and motorcycles globally. Increased orders for slide door bearings in China. (+) Industrial machinery: Increased orders for related equipment, including fuel pump bearings, driven by expanding demand from data centers. (+) Hydraulic equipment: Increased orders for hydraulic pump bearings. (+) Air conditioning: Increased orders due to the impact of global warming. Continued promotion of global sales expansion. (+) Increased due to steady performance in automotive components-related applications and progress in price revisions, contributing to improved profitability. (+)Gains (-)Losses ©2026 DAIDO METAL CO., LTD. All rights Reserved.
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-303 -347-600 0 600 1,200 1,800 2,400 3,000 2025/6 2026/6 Frontier business 13 Unit: JPY Million (Before elimination of inter-segment transactions) Year-on-year comparison 5,544 5,669 0 5,000 10,000 15,000 20,000 2025/6 2026/6 【Net sales】 +124 (+2.3%) 【Operating profit or loss】 - 43 ( - ) (-) Aluminum die cast products: Sales declined due to fluctuating demand from major customers. Efforts to expand sales are being promoted. (+) Precision metal work parts: Although orders from some customers declined, sales increased due to the launch of new large-scale projects and increased orders. (+) Aluminum die cast products: Although affected by higher material costs, cost recovery is expected going forward based on material price fluctuation clauses. In addition, efforts to improve profitability through cost reduction activities are being promoted. (-) Precision metal work parts: Temporary costs associated with the launch of new models were incurred, as well as the impact of higher labor costs. Efforts are being made to improve profitability through labor cost pass-throughs, price revisions, and reductions in SG&A expenses. (+)Gains (-)Losses ©2026 DAIDO METAL CO., LTD. All rights Reserved.
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107 121 -600 0 600 1,200 1,800 2,400 3,000 2025/6 2026/6 Others 14 Unit: JPY Million Year-on-year comparison (Before elimination of inter-segment transactions) 538 602 0 5,000 10,000 15,000 20,000 2025/6 2026/6 【Net sales】 +64 (+11.9%) 【Operating profit or loss】 +14 (+13.1%) (+) Sales increased due to the acquisition of new customers and progress in sales development activities for pump-related products, in addition to increased orders for metallic dry bearings. (+) Increased orders for metallic dry bearings and the acquisition of new customers for pump-related products contributed to higher sales. In addition, progress in price revisions contributed to profit growth. (+)Gains (-)Losses ©2026 DAIDO METAL CO., LTD. All rights Reserved. * “Others” includes the metallic dry bearings business, pump-related products businesses.
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©2026 DAIDO METAL CO., LTD. All rights Reserved. 15 Overview <Sales and Operating profit by Region> Year-on-year comparison Net sales: Increased due to recovery in the domestic automotive market, new orders from motorcycle manufacturers in China, and increased demand for hybrid vehicles in North America and diesel engine-equipped vehicles in Europe. Operating profit: Although affected by higher material costs, profit increased through price pass- throughs and strengthened profitability management. Net sales ratio 2026/6 Amount Ratio Amount Ratio Japan 51.7% + 816 + 3.8% + 62 + 5.2% Asia 24.7% + 231 + 2.2% + 47 + 12.6% North America 14.0% + 662 + 12.2% + 13 + 3.8% Elimination of inter-segment transactions - 561 - 10 Total： + 1,816 + 5.4% + 184 + 10.1% Europe Region 【Net sales】 【Operating profit or loss】 9.6% + 668 + 19.1% + 71 ― Unit: JPY Million
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[Disclaimer] Future prospects described in this document are prepared for informational purposes only, based on the information available to us at this moment, and are under certain conditions which we assumed reasonable. We will not guarantee the realization of such prospects, and actual performance fluctuates due to various factors. Except for the case required by laws and regulations, we are not under any circumstance obliged to update or adjust the description contained in this document with regard to future prospects. Accordingly, please do not make any investment judgement, based solely and fully on the information here included. [rounding method used in this document] Numbers: rounded down to the nearest unit shown Ratio: rounded to the nearest unit shown Ⓒ Copyright 2026 DAIDO METAL CO., LTD. All rights Reserved. 16